Editorial: Right-to-work? Not right here

Michigan is awash in problems. Among the pressing concerns: a persistent structural deficit in state and local government budgets, a shortage of college graduates and a dearth of adequate road funding. Add to that list a deeply polarized political environment that has made accomplishing real reforms difficult.

The recent budget deal in Lansing is proof. The agreement balances the books through the same kind of cobble-and-cut arrangement that has kept Michigan limping along for the past decade without the kinds of reforms that could position the state for a better future.

In that environment, it’s hard to see how a bloody and distracting debate over a right-to-work law would advance anyone’s interests. This is true despite the positives that might come with being a right-to-work state. The possibilities were detailed in last Sunday’s installment of Michigan 10.0, The Press series exploring big issues facing the state.

Twenty-two states currently have right-to-work laws prohibiting agreements between labor unions and employers that make union membership and dues a job requirement. Unions aren’t banned in right-to-work states. But they are much harder to form and maintain.

MICHIGAN 10.0: SHOULD MICHIGAN BE A RIGHT-TO-WORK STATE?

We've spent the past several months exploring issues of vital interest to Michigan. For a full overview of topics, go to mlive.com/mi10.

A study conducted by Grand Valley State University economist Hari Singh, compared nine states that have major auto-related industries. Six of the states are right-to-work: Alabama, Georgia, Kansas, South Carolina, Tennessee and Texas. Three are union-shop states: Michigan, Ohio and Indiana.

Mr. Singh found that if Michigan had become a right-to-work state in 1965, we would have 50,000 to 60,000 more people working in the auto industry today. Michigan has lost 165,777 auto-related jobs since 2002, a 57 percent reduction in that category. Those additional jobs could have made a significant dent in that loss.

Auto manufacturing lifts all boats, creating an estimated nine new jobs elsewhere for every autoworker. Other sectors, including service and even bio-science, don’t boast nearly the same jobs “multiplier,” as economists call it.

In addition, it’s evident that some employers have steered clear of Michigan because of a union environment they believe hamstrings their flexibility through work rules and strike threats. German auto company Volkswagen considered, then rejected Michigan as a plant site, in part because of the state’s tough union image.

Union supporters call right-to-work proposals the “right-to-work for less,” not without reason. The other significant finding of Mr. Singh’s study: While 60,000 more auto-related jobs might exist in Michigan if the state had gone the right-to-work route, auto jobs generally would pay less than they do now. Auto-related jobs here last year averaged $74,498 a year. Were Michigan a right-to-work state, Mr. Singh estimates those jobs would pay in the mid-$60,000 range.

Still, the wage difference between right-to-work and union-shop states is decreasing. Right-to-work states have seen average wages climb, in part because workers in new plants there have gained seniority and experience. Meanwhile, Michigan’s unions have gone through a painful adjustment as two of the Detroit Three auto companies entered and emerged from bankruptcy, and unions made significant concessions to help keep the companies afloat. That closing wage gap makes the right-to-work argument less urgent.

Only one candidate for governor in this summer’s primary — Republican Oakland County Sheriff Mike Bouchard — made right-to-work a significant part of his campaign platform. The idea failed to catch fire with the public. It didn’t do much to boost Mr. Bouchard, either, who finished fourth in a field of five.

There is a compelling argument that right-to-work states do a better job of attracting jobs, the kinds of jobs that have a multiplying effect on the whole economy. Michigan’s unemployment rate could use that kind of boost.

But with the wage gap closing, the state is becoming more and more competitive in its fight to draw and keep companies. Michigan has big problems, especially creating an environment that is business friendly while continuing to support schools, colleges and public services that will make this a great place to live and work.

A divisive donnybrook over right-to-work? It’s not right for Michigan.

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